Interactive Brokers: how can I check whether I am borrowing on margin?

S

supernoob333

I have a margin account with Interactive Brokers. Is there any number in the platform or website that indicates how much I'm borrowing from them? How can I check myself? Is there a simple balance number I'm missing somewhere?

Let's keep things simple and say I have an USD based account, and am just long and short stocks.

As I understand it, I can't simply check whether I have a positive cash balance (but I'm not understanding much right now) because cash from my short stock sales is used as collateral.

Does a leverage under 1 mean I am not borrowing?

Does a
Equity with Loan Value = Net Liquidation Value
mean I am not borrowing?
 
If you borrow money from IB to buy stocks it will show up as a negative cash position. For example: if your account is in USD and you decide to buy stock in Europe you’ll get a negative EUR cash position. The amount you borrow will thus be visible in the currency you’re borrowing.
Borrowing for futures does not show as a negative cash position. However, IB does charge interest on these margin requirements. It is a loan, but it does not affect your cash position.
 
HobbyTrading said:
If you borrow money from IB to buy stocks it will show up as a negative cash position. For example: if your account is in USD and you decide to buy stock in Europe you’ll get a negative EUR cash position. The amount you borrow will thus be visible in the currency you’re borrowing.
More...

Here's an example not touching options or futures then:

I could have $1000 cash, sell $2000 worth of stock short, buy $3000 worth of stock long, and end up with a $0 cash balance, and I would not be borrowing anything?

I'm not suggesting that I would actually like to do that.
 
supernoob333 said:
Here's an example not touching options or futures then:

I could have $1000 cash, sell $2000 worth of stock short, buy $3000 worth of stock long, and end up with a $0 cash balance, and I would not be borrowing anything?

I'm not suggesting that I would actually like to do that.
More...

The short stock doesn't count for borrowing money. That incurs a borrow fee. The long stock of $3000 is $2000 more than your equity so you would be borrowing $2000.
 
You must log in or register to reply here.
Back
Top